Business Research Method

Instructor

Prof. Ravi Shekhar Kumar

XLRI School of Business and Human Resources, Jamshedpur ravishekhar@xlri.ac.in

Contact No. 3186

Session-3

Ups and down in life are very important to keep us going, because a straight line even in ECG means, we are not alive.
..Ratan Tata

Recap

9 March 2014

Problem Definition Process

Discussion with Decision Maker

Defining MRP-1

Background of study
Environment of Problem 3Cs Analysis

Interview with Experts

Defining MDP
Secondary Data Analysis

Defining MRP-2

Defining MRP-3 Qualitative Research

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Development of Hypothesis
Defining MRP-1 Defining MRO/RQ-1 Based on Literature Review Qualitative study Theoretical Knowledge

Defining MRO/RQ-2 Defining MRP-2 Defining MRO/RQ-3 Developing Hypothesis-1

Developing Hypothesis-1

Defining MRP-3
Defining MRO/RQ-4
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Developing Hypothesis-1
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Part I: Research Design

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Research Design: Definition

A research design is a framework or blueprint for conducting the marketing research project. It details the procedures necessary for obtaining the information needed to structure or solve marketing research problems. It lays the foundation for conducting project.

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A Classification of Marketing Research Designs

Research Design

Exploratory Research Design

Provision of insights into & comprehension of the problem situation confronting researchers

Conclusive Research Design

Assist in determining, evaluating & selecting the best course of action to take in a given situation

Descriptive Research
Description of something usually market characteristics & functions

Causal Research
To obtain evidence regarding cause-and-effect relationship.

Cross-Sectional Design
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Longitudinal Design
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Exploratory & Conclusive Research Differences

Exploratory Objective: To provide insights and understanding Information needed is defined only loosely. Research process is flexible and unstructured. Sample is small and nonrepresentative. Analysis of primary data is qualitative Conclusive To test specific hypotheses and examine relationships

Characteristics:

Information needed is clearly defined. Research process is formal and structured. Sample is large and representative. Data analysis is quantitative

Findings/ Results: Outcome:

Tentative

Conclusive

Generally followed by further exploratory or conclusive research

Findings used as input into decision making

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A Comparison of Basic Research Designs

Objective: Exploratory Discovery of ideas and insights Descriptive Describe market characteristics or functions Marked by the prior formulation of specific hypotheses Preplanned and structured design Causal Determine cause and effect relationships Manipulation of independent variables, effect on dependent variables Control mediating variables Secondary data: quantitative analysis Experiments Surveys Observation and other data
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Characteristics:

Flexible, versatile

Often the front end of total research design Expert surveys Pilot surveys Case studies Secondary data: qualitative analysis qualitative research

Methods:

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Uses of Exploratory Research

Formulate a problem or define a problem more precisely Identify alternative courses of action Develop hypotheses Isolate key variables and relationships for further examination Gain insights for developing an approach to the problem Establish priorities for further research

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Methods of Exploratory Research

Survey of experts Pilot surveys Secondary data analyzed in a qualitative way Qualitative research

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Use of Descriptive Research

To describe the characteristics of relevant groups, such as consumers, salespeople, organizations, or market areas

To estimate the percentage of units in a specified population exhibiting a certain behavior

To determine the perceptions of product characteristics

To determine the degree to which marketing variables are associated

To make specific predictions

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Uses of Causal Research

To understand which variables are the cause (independent variables) and which variables are the effect (dependent variables) of a phenomenon To determine the nature of the relationship between the causal variables and the effect to be predicted

METHOD: Experiments

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Part II: Intel: Building Blocks Inside Out- Case pp. 402-403

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Intel: Building Blocks Inside Out

Role of Marketing Research:
Marketing research played an important role in the development of the Intel Inside campaign. Marketing research helped Intel realize that a lack of customer awareness was the main problem associated with its current marketing strategy. Marketing research also revealed that in order to be effective, Intel would have to convince the consumer that what was inside the computer was as important as what was outside.
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Intel: Building Blocks Inside Out

Background
Intels Customer fall into two separate groups: OEM, and PC & network communication users By 1994, Intel had captured 95% of the microprocessor market. But as a result of increased competition, Intels market share has slipped to 80% in 2005. Intel faces increased competition, the opening of new market & development of new market. Lack of Awareness among microprocessor users.

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Intel: Building Blocks Inside Out

Management Decision Problem:

What can Intel do to increase customer preference in both the individual and business user segments?

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Intel: Building Blocks Inside Out

Marketing Research Problem
To identify customer preferences for microprocessors among both individual and business users.

More specifically:
What criteria do individuals and businesses use in evaluating microprocessors? How do individuals evaluate microprocessors? How do businesses evaluate microprocessors? What characteristics are associated with household customers that prefer Intel to its competitors? What characteristics are associated with business customers that prefer Intel to its competitors?
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Intel: Building Blocks Inside Out

Due to the nature of the question, exploratory research should be conducted first.
Exploratory research will provide insight & understanding into the problem. This type of research will help Intel gain a better understanding of how consumers and businesses select PCs and network communication products The exploratory phase should be followed by descriptive research in the form of a single cross-sectional survey that will quantify the findings of exploratory research and enable Intel to test specific hypotheses.

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Intel: Building Blocks Inside Out

The Internet is a large source of secondary data.
Information can be found through search engines or traditional suppliers of secondary data. Both industry and company data can be obtained through various sources and databases found over the internet.

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Intel: Building Blocks Inside Out

Qualitative research would be used to define the problem and develop an approach. Intel would use this research to generate hypotheses and develop an initial understanding of how businesses select PC and network communications products. Both depth interviews and focus groups would be appropriate qualitative research techniques in this case.

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Intel: Building Blocks Inside Out

The most appropriate survey method to determine selection criterion used by businesses for choosing PC and network communications would be an Internet based survey. Virtually all businesses in the US have access to the Internet. This technique would be preferred based on diversity of questions, flexibility of data collection, control of the field force, perceived anonymity, obtaining sensitive information, speed, and cost. Sample Questionnaire
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PCs AND NETWORK COMMUNICATION PRODUCTS SURVEY

Q1. Have you purchased a PC or network communication product for your company within the past two years? (a) PCs: i. Yes _____ ii. No _____ (b) Network Communication Products i. Yes _____ ii. No _____ Q2. Who is the dominant manufacturer of the PCs and Network Communication Products that your business owns? (a) PCs: ______________________________ (b) Network Communication Products ______________________________ Q3. How satisfied are you with the PCs and Network Communication product overall? Not at all Very Satisfied Satisfied (a) PCs: 1 2 3 4 5 6 7 (b) Network Communication Products 1 2 3 4 5 6 7 Q4. If you were to purchase PCs, please evaluate how important the following would be in your purchase decision. Not Important Neutral Very Important Price 1 Company selling product1 Brand name of product1 Familiarity with product1 Quality of product 1 Service of company 1 Functionality of product1
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2 2 2 2 2 2 2

3 3 3 3 3 3 3

4 4 4 4 4 4 4

5 5 5 5 5 5 5

6 6 6 6 6 6 6

7 7 7 7 7 7 7

PCs AND NETWORK COMMUNICATION PRODUCTS SURVEY

Q5. If you were to purchase Network Communication Products, please evaluate how important the following would be in your purchase decision. Not Important Neutral Very Important Price 1 Company selling product1 Brand name of product1 Familiarity with product1 Quality of product 1 Service of company 1 Functionality of product1 2 2 2 2 2 2 2 3 3 3 3 3 3 3 4 4 4 4 4 4 4 5 5 5 5 5 5 5 6 6 6 6 6 6 6 7 7 7 7 7 7 7

Q6. Contact Information (for awarding prizes) Name ________________________________________ Company _______________________________________ Address________________________________________ Phone ________________________________________ E-Mail ________________________________________

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Part-III Illustration of Problem Definition

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Illustration:
Whether Parker Pen should invest in social media sites for developing brand equity among students of premiere Business schools?

Research Environment
Total market for pens in India is valued at about Rs.2000 Crores & 75% of this lies in the organized sector The industry is very competitive and fragmented Parker pens though cater to the mostly uncluttered premium segment Current norm - Premium pen is a pen carrying a price tag above INR 80 Students form the major target group for premium pens in India Quasi Fashion Statement- align with their unique personality Attractive for superior design, features and the grip of the pen Means to show their dedication to their work

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Research Environment
Pens exhibit a consistent and inelastic demand pattern Premium pens are influenced by the business cycles due to their higher elasticity Pens being non perishable goods, experience decrease in frequency of purchase of premium brands in times of slow down Parker pens are marketed in India by Luxor Parker pens advertisement campaigns appear regularly on television and on the print-media Parker has a huge potential untapped in the online space Competition from players - Pierre Cardin, Linc
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Research Environment
Social Media is not only beating conventional media on various fronts such as degree of interaction and engagement, social media is also a cost-effective way of generating awareness. Top 5 Social Media Platforms Blogs Collaborators to generate and share original content. Facebook Allows companies to promote in real time through videos, photos, descriptions and testimonials Twitter Allows promotions through short messages LinkedIn One of the main platforms for B2B promotions, LinkedIn allows the companies to create dedicated pages and promote products YouTube Power of videos to create awareness and engage crowd
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Management Decision Problem

Should Parker invest in social media sites for developing brand equity for its pens among students of premiere Business schools?

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Consolidated View and Problem Break-down

MDP RP RO

To identify the effect of a person's hometown To understand the effect on the social media habits?

Should Parker invest in social media sites for developing brand equity for its pens among students of premiere Business What is the current schools? brand equity of Parker pens?

of demographic & To identify the effect of socio-economic class psychographic profile of on the social media habits? students on their social media habits To identify the correlation between age of a
person and his social media habits?

To determine the current awareness of Parker pens? To determine the current consumer loyalty towards Parker pens? To determine the brand associations for Parker pens? To determine the quality perception for Parker pens?

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Consolidated View and Problem Break-down

MDP RP RO
Does social media presence of a brand help build brand awareness?

To determine the effectiveness of social Does social media presence of a brand help to build brand loyalty? media with respect to Should Parker invest in social the factors that build Does social media presence of a brand help build positive brand associations? brand equity media sites for Does social media presence of a brand help build a developing brand perception about its quality? equity for its pens among students To identify the social media websites frequently Identify the target visited by the target group? of premiere Business schools? customers preferred To determine if promotion on preferred media sites sites with respect to influence purchase intension? the factors that build brand equity To identify social media sites which catch user
attention towards premium brand promotions?
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Research Objectives mapped to Hypothesis

RO Hypothesis

MBA students from Tier-1 and Tier-2 cities spend more than 3 To identify the effect of a hrs on social media sites everyday person's hometown on the MBA students from Tier-3 cities spend less than 2 hrs on social media habits. social media sites everyday MBA students from SEC A & B spend more than 3 hrs on To identify the effect of social media sites everyday socio-economic class on the MBA students from SEC C spend less than 2 hrs on social social media habits. media sites everyday MBA students below 25 years of age spend more time than To identify the correlation those above 25 yrs of age between age of a person Students below age 25 yr outnumber students above 25 yr in and his social media habits. premiere MBA institutes

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Research Objectives mapped to Hypothesis

RO

Hypothesis

Parker has the highest brand recall among premium pens To determine the current 60% premiere MBA institute students identify Parker pens with awareness of Parker pens its logo To determine the current Parker is the preferred choice for repeat purchase of premium consumer loyalty towards pen among MBA students

Parker pens To determine the brand associations for Parker pens To determine the quality perception for Parker pens
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Parker is advocated by 50% of the current Parker pen users 50% of parker pen consumers consider it a a prized possession 50% of parker pen consumers consider it a symbol of innovation 70% of parker pen consumers consider it a functionally superior pen 70% of parker pen consumers consider it a reliable product

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Research Objectives mapped to Hypothesis

RO Hypothesis

Does social media presence of a brand help build brand awareness? Social media promotions enable top of the mind recall
Presence of advertisement on social media positively Does social media presence of impacts the repeat purchase decision a brand help to build brand Users of loyal products advocate the product on social loyalty? media sites Social media presence increases the believability of the Does social media presence of brand communication a brand help build positive Brand presence on social media increases the worthiness of brand associations? owning the brand Brand presence on social media enhances the perception of Does social media presence of product's superior quality a brand help build a Brand presence on social media increases the perception of perception about its quality? reliability
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Research Objectives mapped to Hypothesis

RO Hypothesis

Facebook is the most frequently visited social media site by To identify the social media students of B-schools websites frequently visited Blogs is the least frequently visited social media site by students by the target group? of premier B-schools

To determine if promotion on preferred media sites influence purchase intension To identify social media sites which catch user attention towards premium brand promotions

MBA students purchase a product after seeing its promotion on their preferred site Promotions for premium products on Facebook are most effective to catch the attention of students of premier B-schools Promotions for premium products on blogs are least effective to catch the attention of students of premier B-schools

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Questions.. ?

Thank you for your attention .

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